The construction of the 144-km railway link would be funded under a public private partnership (PPP) scheme, Director General of Railway Affairs at the Transportation Ministry Tundjung Inderawan said on the sidelines of a seminar on the Pre-feasibility Study of the Jakarta-Bandung High Speed Railway PPP Project, here on Monday.
MILT would appoint Japan Railway Technical Service and Yachiyo Engineering to prepare the pre-feasibility study to be conveyed to the Indonesian government, he noted.
The pre-feasibility study would cover a number of aspects including construction, land clearance, taxation, environment, railway routes, topographic conditions, and train fares, he added.
Under the PPP scheme, the Indonesian government would finance the project using state budget funds by involving private investors, he said.
"The government must involve a third party because of limited funds. However, the government will work on other aspects such as land clearance," Tundjung said.
MILT representative Kenji Endo said the railway link might use super express trains that go up to speeds of 210 km per hour.
The first phase of the project, which will work out to Rp46 trillion or 90 percent of the total cost, will cover railway tracks, railway stations, trains, operation and maintenance.
The remaining 10 percent of the total cost will be used for consulting services and taxes.
Director of Government-Private Cooperation at the National Development Planning Board (Bappenas), Bastari Panji, said the government would prioritize the project not only because it would cover a short distance but also because it would not burden the state budget much.
(Uu.S012/KR-BSR/INE/A014)
Editor: Priyambodo RH
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